2013 SUSTAINABILITY PERFORMANCE
Altogether more sustainable
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1. INTRODUCTION
1. Altogether more sustainable | 2. Our approach to sustainability | 3. Targets and performance | 4. Interview with Pierre Vareille and Laurent Musy
8. PRODUCTS
9. A portfolio of sustainable products | 10. Recycling | 14. Innovation | 17. Customer satisfaction
18. PEOPLE
19. Safety | 22. Skill development | 23. Motivation and engagement | 24. Ethical behavior | 25. Community engagement
26. OPERATIONS
27. Energy | 30. Waste | 31. Water and emissions to air
32. GOVERNANCE
33. A culture of transparency
36. GRI INDEX
Global Reporting Initiative Disclosure Index
KEY PICTOGRAM Through its Sustainability Roadmap, Constellium indentifi ed 12 main targets. You can fi nd them through this report thanks to this symbol.
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WE ARE COMMITTED TO DEVELOPING, PRODUCING AND SELLING SUSTAINABLE PRODUCTS THAT MEET OUR CUSTOMERS’ NEEDS NOW AND IN THE FUTURE.
WE WILL
1. Maximize recycling rates of our products, including after end of use life 2. Continuously innovate and offer lighter, safer and infi nitely recyclable solutions
WE ARE COMMITTED TO ENSURING OUR PEOPLE ARE SAFE, SKILLED, MOTIVATED AND ENGAGED.
WE WILL
1. Protect the safety and health of our employees, contractors and visitors as a top priority 2. Strive to enhance employee engagement and development
WE ARE COMMITTED TO MINIMIZING THE ENVIRONMENTAL IMPACT OF ALL OUR OPERATIONS IN TERMS OF ENERGY, WASTE AND WATER.
WE WILL
1. Further develop recycling 2. Optimize the use of natural resources, especially energy 3. Prevent and minimize environmental impacts
WE ARE COMMITTED TO UNDERTAKING THE HIGHEST STANDARDS OF GOVERNANCE OF OUR ACTIVITIES IN LINE WITH CONSTELLIUM’S VALUES.
WE WILL
1. Subscribe to the highest levels of transparency and accountability and commit to develop company and industry sustainability programs 2. Promote the adoption and implementation of sustainability policies by our suppliers and contractors
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SUSTAINABILITY PROGRAMS Our approach to sustainability
Constellium’s key objective is to improve the sustainability of its operations and of the whole industry, while being fully transparent about the progress it achieves. These activities involve working closely with the following international organizations.
CDP: a forum for sustainability EcoVadis: performance monitoring The Carbon Disclosure Project (CDP) offers companies A rating agency that specializes in sustainable development a forum for disclosing information and metrics regarding and ethics, EcoVadis offers a collaborative platform that their sustainability. Constellium participated in the CDP allows companies to assess the environmental and social for a second time in 2013 – disclosing its greenhouse gas performance of their suppliers worldwide. In 2013, EcoVadis emissions and actions against climate change, providing awarded Constellium the Silver Recognition Level rating for more detailed information than in its 2012 submission. its sustainability performance.
ASI: an industry initiative GRI: a reporting Constellium is a founding member of the framework Aluminium Stewardship Initiative (ASI), Recognized internationally, UN Global Compact: which aims to produce a global standard the Global Reporting key principles of sustainability for the aluminium Initiative (GRI) provides The world’s largest voluntary CSR initiative industry by the end of 2014. The standard a voluntary framework allows enlightened companies to become will defi ne principles and performance for the drawing up of partners of the UN for a sustainable criteria for the supply chain – from bauxite companies’ sustainability and inclusive global economy. As a signatory, mining through to recycling – in terms reports. In 2013, Constellium undertakes to align its strategies of governance, environmental and Constellium’s Sustainability with 10 universally accepted principles social practices. The standard-setting Report 2012 (‘Altogether in the areas of human rights, labor, group features 14 companies and more sustainable’) received environment and anti-corruption. 15 non-industry bodies with expertise a check level A for its level in sustainability and governance. of disclosure.
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TARGETS AND PERFORMANCE
OBJECTIVES TARGETS PROGRESS PRODUCTS 75% beverage can recycling rate in Europe by 2015 DEVELOPING, PRODUCING AND SELLING SUSTAINABLE PRODUCTS: MEETING All major new innovation projects through LCA by 2015 NEEDS AND REDUCING THE ENVIRONMENTAL IMPACT OF OUR CUSTOMERS NOW AND 10% of sales from innovative products by 2015 IN THE FUTURE
PEOPLE 60% improvement in recordable cases by 2014
ENSURING OUR No serious injuries in 2015 EMPLOYEES ARE SAFE, SKILLED AND 50% improvement in employee contributions by 2014 MOTIVATED WITH ETHICAL BEHAVIORS AND REGULATORY 75% participation rate in the employee survey in 2014 NA COMPLIANCE 6-point improvement in the employee satisfaction rate in 2014 NA
OPERATIONS 10% decrease in energy consumption per processed unit by 2015 MINIMIZING THE ENVIRONMENTAL IMPACT OF ALL OUR Major European sites reaching ISO 50001 certifi cation by 2015 OPERATIONS IN THE FOLLOWING KEY AREAS: ENERGY, WATER AND WASTE 75% total landfi ll reduction by 2020
GOVERNANCE
SUBSCRIBING TO THE HIGHEST LEVELS OF 100% of key suppliers joining the UNGC by 2015 TRANSPARENCY AND ENSURING A RESPONSIBLE SUPPLY CHAIN
NA Not available Needs improvement On track
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INTERVIEW The road to a sustainable future
Constellium’s Chief Executive Officer Pierre Vareille and Laurent Musy, Chairman of the Constellium Sustainability Council, discuss the company’s sustainability agenda and performance over the past year, and the challenges it faces in the years ahead.
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How would you defi ne Constellium’s approach In our 2012 Sustainability Report, we set out a to sustainability? 12-point agenda with each a clear target for im- Pierre Vareille: Sustainability means a license to provement over the year ahead. Our performance operate, at least in some markets, and is clearly on safety was clearly unacceptable. More work is growing in importance. Our portfolio of products also needed in two other targets – supplier engage- helps sustainability worldwide particularly through ment and landfi ll. All the other ones – from employee lightweighting of cars and airplanes for instance, contributions to energy effi ciency, and ISO certifi -
thereby reducing both energy consumption and CO2 cation to can recycling – showed progress. emissions. In addition, all aluminium products can be recycled, whether it is after a useful life of a few To what extent is sustainability being driven weeks for a beverage can or after more than 20 years by customers? for an aircraft. When you combine the savings made PV: I think it’s a signifi cant factor and refl ects a trend during the use phase and at the time of recycling, in society in general. People want to buy products you offer a solution to sustainability challenges. that are “responsible” because so much is at stake
Yet sustainability doesn’t stop at CO2 emissions as for the future of the planet. The feedback we get it encompasses many more topics that Constellium from our customers – and also their customers – is must address. These range from customer satis- an ever-greater demand for “responsible aluminium” faction to community engagement and responsible solutions. That means we have to create products purchasing. Having not only sustainable products that are not just acceptable but are actually re- but also sustainable activities is key for our core quested by the end consumer. It’s why we helped markets. to found the Aluminium Stewardship Initiative. We wanted to engage with downstream customers What were the key events of 2013 and non-governmental organizations (NGOs); in for Constellium in terms of sustainability? other words, with people from outside our industry. Laurent Musy: Constellium’s engagement goes beyond its products. Indeed, we have been witness- Carmakers are increasingly turning to ing a great deal of progress at our plants, thanks aluminium. How can that demand be met largely to the LEAN transformation. In terms of sus- while still maintaining sustainability? tainability KPIs, we continued to improve energy LM: By looking beyond just the production stage effi ciency and we remain on course for ISO 50001 and assessing the entire life cycle. Aluminium is certification at all our main European sites. The excellent for cars and the improvement in fuel con-
Constellium Sustainability Council is meeting on a sumption and CO2 emissions over a car’s lifetime regular basis, the Aluminium Stewardship Initiative will more than offset its production footprint. What’s (ASI) is making good progress on a standard of gov- more, the aluminium in cars is fully recycled – ernance for the industry, and our reports to the because it’s simply too valuable to go to landfi ll. It’s Carbon Disclosure Project and Global Reporting true that there is a phenomenon of “downcycling” Initiative both show improvements. Sales of inno- – where alloys of different value are mixed in recy- vative solutions like AIRWARE® and Body-in-White cling furnaces, typically to make engine blocks. In products, which both have very positive life cycle the long run, this problem will need to be addressed impacts, are increasing at a spectacular rate. by the industry as increased volumes from end-of- However, we faced a major disappointment in 2013: life vehicles will call for better alloy sorting in order safety. We experienced two fatalities (in Levice, to allow for their recycling in wrought products. Slovakia and Ravenswood, USA) and fi ve addition- Today, better alloy segregation is already needed to al serious injuries. The safety of our employees and extract most of the value from car manufacturing contractors is our fi rst priority – and we failed last scrap, for instance. year. We are doing everything we can in 2014 to ensure that our safety record, which had seen a decade of annual improvement, returns to its previous level before improving again.
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In terms of sustainability, what are the priorities for 2014? LM: At plant level, there are three of them – with safety undoubtedly being top of the list, followed by energy effi ciency and effective recycling. Safety has always been an absolute priority, and there are comprehensive policies and measures already PV: We have been working hard at our plants for in place to deliver that. I think the challenge is one many years to improve Environment, Health and of focusing our employees on the need for safe Safety (EHS), along with energy consumption. But behaviors on a day-to-day basis. We’ve done a lot putting it all together in a single sustainability in terms of implementing new safety systems, but framework is more recent. It is a long journey and the bulk of the injuries that are still occurring are we are still not where we want to be. The publica- linked to people’s behavior. That said, it’s also a tion of our first Sustainability Report last year, management issue; we have to ensure that the along with sustainability targets showed to our rules are clear and simple, that they can be applied employees that individual actions are consistent and that the rigor and discipline are there to make and part of a global sustainability policy. It is also sure they are followed. important to realize that we are part of a value chain and that what we do internally is essential – but cannot be enough. We need to work closely with our suppliers and customers to provide solu- tions that benefit all stakeholders. That means CONSTELLIUM AND THE UN GLOBAL COMPACT making sure we buy aluminium in a responsible way, that we recycle as much as possible, and “I am pleased to confi rm that Constellium that our products help to meet the CO2 challenge. reaffi rms its support of the Ten Principles of We are certainly a very important link in the chain the United Nations Global Compact in the – but ultimately we are only one link. Otherwise we areas of human rights, labor, environment will miss the big picture. and anti-corruption. We have embedded At company level, we have defi ned four key sus- these principles in our sustainability tainability themes in our objectives and roadmaps. roadmap including key commitments and The fi rst of these is safety. More than an indicator action plans, which we share in this report.” of good management, it is our fi rst ethical respon- Pierre Vareille, Chief Executive Offi cer sibility to make sure that our people are safe at work. The second is to provide products that meet
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our customers’ needs and bring the benefi ts I men- innovation. We cannot have commercial success tioned earlier. Even though our own activity is by without satisfi ed customers, without plants that are far not the most energy intensive in the value chain, working well and without new products. In the long effi cient operations are another key theme, as our run, financial performance and sustainability plants have energy-consuming processes and performance are linked. It’s just good management. produce both emissions and waste. All of these need to be minimized and I think we are doing a What are the main challenges facing good job on that front. We can’t ask our suppliers Constellium in terms of sustainability? to be more efficient if we are not efficient our- LM: The main challenge is the engagement of our selves. Finally, governance is also an important people, which is also a key element of the LEAN theme in our approach to sustainability. transformation and its KPIs. We have communica- tion tools, well-defi ned processes for employee What are the plans for energy effi ciency suggestions, participation in improvement work- and recycling? shops and other activities. It’s about getting peo- LM: Energy effi ciency is a mixture of straightfor- ple actively involved in what the company is doing ward capital projects and technical improvements – making people more aware of what customers on the one hand, but also people’s behavior on the want and how we provide our solutions. Sustain- other. For example, simply closing a furnace door ability clearly has a great deal to do with our prod- as soon as possible saves energy, as does switch- ucts and processes. But ultimately, it all comes ing off lights. People really can make a difference. down to people. To encourage that, we have put a lot of effort into communication at shop fl oor level – which is also PV: Five years ago, we had individual sustainabil- an important part of our LEAN transformation ity practices, but there was no overall framework. program. LEAN is partly about making sure that That’s what we have now, although it remains a supervisors and managers are spending most of “work in progress” and we still need to bring those their time on the shop fl oor with operators – com- individual threads closer together. Five years from municating, motivating and instilling the right now, I would like us to have an agenda that is rigor and discipline. They need to make sure that widely shared across the company, so that people people understand and have the right behavior. As are conscious of sustainability in the work they for recycling, we’re doing a good job on internal do, whatever their activity, be it designing a new aluminium scrap – none of which is wasted. Where product or operating machinery. we still have room for improvement is to minimize the generation of scrap not only in our plants but Finally, would you like your relationship also in downstream activities. 2014 is the Year of with the wider community to change? Quality and that will help reduce internal scrap and PV: I would like our company to engage more with improve the quality of products we ship to our cus- external stakeholders. For example, we have a tomers. Innovative products and solutions will also dialogue with non-governmental organizations save metal. But we also keep increasing our recyc- through the ASI, but we don’t have NGOs or anyone ling capacities. Finally, Constellium is a partner in else directly challenging us on what we are doing a wide variety of national and international recy- on sustainability. Today, the Constellium Sustain- cling initiatives – from R&D and sorting projects to ability Council is purely internal, but one of my scrap collection programs. goals is to introduce people from outside. Similar- ly, I think we should look for opportunities to invite How do those objectives fi t with the business a broader range of stakeholders into our plants. imperative? It may sound counter-intuitive, but being chal- PV: You can’t have one without the other. We want lenged on our sustainability will actually help the to remain the most profi table company in our in- business – as it will help us to address an issue dustry and to do that we need both excellence and that I believe will be a key factor in being compet- sustainability in customer relations, operations and itive in the future.
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PRO MAKING ALUMINIUM DUCOUNT CTS
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PRODUCTS AND SUSTAINABILITY A portfolio of sustainable products
Whether it’s the aerospace, automotive or packaging markets, Constellium has developed products that highlight the unique properties of aluminium. With their strong focus on recyclability, innovation and lightweighting, these products were created with our customers’ needs in mind.
ar from being an abstract idea, sustainability can actu- ally be seen as Constellium’s core product. Its strong, Flightweight aluminium alloys help
to cut fuel consumption and CO2 emissions in aircraft and automo- biles, while its recycling operations
contribute to saving CO2 emissions. Innovation in all three areas focuses on exploiting aluminium’s intrinsic properties: mechanical strength, low density, formability, thermal and electrical conductivity, corrosion resistance, and infi nite recyclability.
LIGHTER, STRONGER AND SAFER
From Crash Management Systems that make cars safer and lighter to quires only 5% of the energy needed Research Institute for Materials, AIRWARE® technology that cuts weight to produce primary metal. As a result, Metallurgy and Processes (IRT M2P). up to 25% compared with convention- Constellium invests in its own recy- Along with its physical properties, the al aircraft materials, sustainability cling circuits and is also involved other true test of a product’s sustain- is clearly a key driver for innovation. in programs to recycle aluminium- ability is customer satisfaction. For this Lightweighting also has widespread intensive products with industry and reason, Constellium has developed applications in transportation and the general public. These include no- training and visit programs which en- industry. Along with innovative ideas, tably the Clean Sky initiative in aero- sure that all its employees – including however, recycling also has a major space, Every Can Counts in beverage production staff – understand the key role to play. Recycling aluminium re- can packaging and the Technological needs of customers.
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RECYCLING An infi nite life cycle
Recycling is an integral part of Constellium’s business model. The fact that aluminium can be endlessly melted down and recast without any loss of its mechanical properties is the key to its sustainability.
he importance of recycling to Constellium’s activities cannot be overestimated. Producing primary aluminium from bauxite ore requires around 20 times Tmore energy than creating new metal from recycled aluminium. No other major material exhibits such a huge difference in the environmental impacts of its two potential sources. As a result, recycling is both a major driver of sustainability and a business imperative. Its importance is refl ected in the fact that recycling is carried out at all three stages of
SCRAP PROCESSING IN DECIN
A new recycling furnace opened in Decin in September 2013 to treat two types of scrap: “closed loop” process scrap from customers in Germany and the Czech Republic, plus a variety of end-of-life products including coated aluminium sheets from building demolition. The furnace, which has an annual capacity of 5,000 tons of molten metal, also introduces a new technology to the Constellium group. Complementary to the existing rotary furnaces, the new unit will broaden both the recycling skills and the industrial capacity to deal with various types of scrap.
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Every Can Counts: can recycling made easy Every Can Counts was launched in 2009 to encourage consumers to recycle beverage cans. Caroline Archer, Marketing and Key Account Director for Crown’s beverage can business in Europe and Middle East and Chairwoman of Every Can Counts, explains. 75% BEVERAGE CAN RECYCLING RATE IN EUROPE BY 2015
WATCH CAROLINE ARCHER’S FULL INTERVIEW ONLINE the life cycle – using the internal process scrap created during transformation; customers’ scrap produced by stamping, milling and other pro- What is Every Can Counts? Constellium plant in Colmar cesses; and the recovery of end-of-life products. Around 30% of beverage cans (Neuf-Brisach) has been a Although progress can still be made in alloy seg- are consumed in workplaces or great ambassador for the pro- regation, the fi rst two stages are generally dealt by people “on the go”. Every gram in the Alsace region. with effi ciently. The main challenge in this area is Can Counts is a communication to increase the recycling of end-of-life products. program that spurs consumers What progress has been Constellium is engaged in numerous short and to recycle their cans when made and what challenges long-term initiatives to increase the amount of away from home. The message lie ahead? recycling (see insets). A combination of internal is simple, credible and fun: More than 3,000 workplaces programs and projects with partners, these initia- put your can in a collection bin have now implemented Every tives concentrate on three priority areas for im- and it will be recycled. Can Counts messaging, and provement: collection rate, sorting and recycling Launched in the United King- there are over 11,500 branded processes. Every Can Counts, a campaign to dom, today the program oper- collection points in place increase beverage can collection, is one example ates seven licensed country across Europe. Together the of a project with immediate benefi ts. The IRT M2P programs (France, Austria, country programs have taken program, of which Constellium is a co-founder, Hungary, Romania, Ireland, part in a total of 590 outdoor is a French government R&D initiative for the United Kingdom, and Montene- events. Today recycling rates gro), and will soon launch for beverage cans across in Greece. Europe are close to 70%. Industry’s target is to reach How is Constellium involved 80% by 2020, and I think Recycling is both with the program? through cooperation in infra- Constellium has been in- structure and communication a major driver volved as a funding partner we can help make this happen. of sustainability and supportive of Every Can and a business Counts from the start. The imperative.
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longer term. Designed to promote technology dealing with re-melting process optimization in transfer from university to industry, part of its re- rotary furnaces or oxy-fuel technology to enhance mit is to develop measurement and separation both metal recovery and energy effi ciency. Other techniques for recycling. projects focus on new methods of scrap sorting Constellium’s Research and Technology agenda and preparation, along with the development of addresses this issue through a series of projects enhanced computer-modeling techniques for assessing the thermal and fl ow properties of molten material. EVERY CAN COUNTS IN FRANCE Constellium is active in all these areas, and is a fi rm advocate of better scrap separation at every In 2012, Constellium’s Neuf-Brisach site helped level of collection. Effective separation is the key to launch Chaque Canette Compte (CCC), the French to avoiding unnecessary scrap mixing and unwant- counterpart of Every Can Counts (see page 11), with ed contamination – thereby preserving both the the support of the Beverage Can Makers Europe (BCME). performance and value of the alloys involved. The site hosts two business students in charge Another contribution should come from product of prospecting new collection sites, and promotion, designs that take future recycling into account. through events, public relations, and communication. Preventing an accumulation of mixed alloys is also They help joining members, such as Eiffage or the important since unsorted metal is expected to lose University of Upper Alsace, to fi nd existing collection value in the long term as demand decreases. systems or offer them tailor-made collection solutions. The ability to keep more of the valuable wrought CCC is also present at such events as the motorcycle alloys in a closed production loop is therefore vital “Dark Dog Tour” or the WRC French round “Rallye de for the future and is a key reason for Constellium’s France-Alsace”, deploying ad hoc collection systems. involvement in the IRT M2P recycling taskforce. Thanks to CCC, 7 million cans were collected in two Constellium’s aim is not to increase the recycled content of a specific product, as the limited years, saving more than 1,000 tons of CO2 emissions. availability of secondary aluminium means the
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IRT M2P: preparing the future of recycling How can aluminium recovery be improved? Constellium and Derichebourg Environment are sharing ideas as part of the IRT M2P industry research program, says Derichebourg’s R&D Director Manuel Burnand.
WATCH MANUEL BURNAND’S FULL INTERVIEW ONLINE
The LCA and Recycling working group of the IRT M2P, which comprises representatives from French institutes (UTT, IRT M2P, Mines Nancy) and industry (ArcelorMittal, Constellium, Derichebourg, Renault and Safran).
How are Derichebourg and think about ways to im- and Constellium involved prove the cooperation be- company would be simply diverting recycled in the IRT M2P? tween our companies. metal from elsewhere. Clearly, there is no environ- Derichebourg is a longstand- mental benefi t in increasing the recycled content ing major player in aluminum What are the key areas of one product to the detriment of another. The goal recycling; active in sorting, of progress for both is instead to increase the effi ciency of the entire improvement of scrap quality companies? lifecycle. and refining. Constellium is One key improvement area also involved in aluminum re- is the recovery of the added cycling. value of aluminum alloys IRT M2P provides a collab- produced by the aluminum orative platform to work on industries for various markets: sorting technologies for alu- automotive, aerospace, pack- RECYCLING INITIATIVE minium scrap. For instance, aging, etc. together with the car industry New products will arrive on Constellium has joined the Center for we analyze the composition of the recycling market, such as Resource Recovery and Recycling (CR3), end-of-life vehicles and the aluminium alloys from air- an initiative that brings together effi ciency of the various sort- plane recycling. Aluminium universities and industrial partners ing steps. There is also a need parts in cars have also in- in Europe and the US. CR3 deploys to provide more information to creased in recent years and projects with a common aim of using feed Life Cycle Analysis data- will create both issues and new technology to achieve “zero waste” bases and IRT M2P aims to opportunities for aluminium 100% recycling. Projects such as address this. recycling. The two companies automated scrap sorting, the conditioning The program also provides an will have to pool their exper- of machining chips and molten metal opportunity to check the com- tise to address these emerg- composition measurement are of direct patibility of both strategies ing issues. interest to Constellium, which is represented by the Constellium Techology Center.
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INNOVATION s a technology company, innovation is key to Constellium’s future Embedding sustainability growth. To ensure that innovationA plays a vital role in our activities, the company has set itself into innovation an ambitious target of achieving 10% of its annual sales by 2015 from prod- ucts or processes created within the previous five years. Constellium is now very close to meeting that target, having earned 9.3% of its sales from Constellium’s research programs and these products in 2013, and is confi - innovation have delivered a wide array dent that this percentage will contin- of new products, all of which include ue to increase. sustainability as a key component. In a complex technological environ- ment, delivering innovation has to rely on effective project manage- ment. To manage its projects, Constellium uses a gate process that takes a product from the idea stage through to development, industrial- ization and delivery to the customer. Gate reviews are carried out cross-
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functionally to ensure that all requirements are met before the product moves to the next stage. Protecting the environment with Clean Sky LIFE CYCLE ASSESSMENT Dassault and Constellium are part of Clean Sky, a European Commission program with the Since the end of 2013, Constellium aerospace industry to improve the environmental introduced the use of Life Cycle impact of aviation. Jérôme Lery, Senior Project Assessments (LCA) to analyze the Manager at Dassault, explains the project and potential environmental impact of a the involvement of the two companies. new product or process. The starting point for any innovative new product is an assessment of how it performs against a sustainability checklist that covers not only the environmental aspects, but also the possible health, safety, and social implications. The results then lead to a decision as to whether an LCA is required or not. If one is needed, an assessment will be conducted using standard LCA tools and calculations. All of these assessments and checklists will be used when “Go-No go” decisions need to be taken at various mile- What is Dassault’s role corrosion – for fuselage panels. stones during a project. The check- in Clean Sky? In parallel, we are developing lists and the assessments have been We are working on several new surface treatments with- designed as practical tools to help Integrated Technology Dem- out Chromium VI and are able with decision-making. Their use will onstrator (ITD) and are co-lead- to mill panels by mechanical also help to raise a more general ers of the Eco-Design ITD, rather than chemical means. awareness of sustainability issues which has two parts: Eco- Our Life Cycle Assessments within the company. Design Airframe (EDA), which (LCAs) show there are signifi - looks mainly at manufacturing cant benefi ts from this. with lower environmental im- pacts, and Eco-Design Sys- What does Constellium tems (EDS), which aims to bring to Clean Sky? replace certain hydraulics with It brings the perspective of electrical systems – e.g. for a raw material supplier, and actuators – so as to reduce that’s important because ALL fuel consumption and the use LCA studies on parts of our MAJOR NEW of hydraulic fl uids. aircraft show that raw mater- INNOVATION PROJECTS THROUGH LCA BY 2015 ials have a very big impact at How does Constellium the production stage. So if we, fi t into this? as Dassault, want to reduce In EDA, we’re cooperating on a our environmental impact project to develop a new alu- we need to work with our minium-lithium-magnesium suppliers, both of metals and 10% alloy – with lower density and composites. OF SALES FROM better intrinsic resistance to INNOVATIVE PRODUCTS BY 2015
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INNOVATION New products and programs
A variety of new aluminium products were launched in 2013, offering enhanced performance for the automotive, transportation and industry sectors.
FORMALEX® PLUS
A highly formable alloy for car doors, FORMALEX® PLUS allows automotive manufacturers to use their existing steel stamping tool with only minimal changes – enabling them to produce a door that is 40% lighter.
NEW HIGH-STRENGTH ALLOY FOR CRASH MANAGEMENT SYSTEMS HYBRID MONORAIL STAYBRIGHT™ Constellium has launched a new ultra-high strength 6xxx alloy to A hybrid aluminium-composite mono- A product for car trims, STAYBRIGHT™ make car bumpers even safer and rail has been jointly developed by combines the brilliance of aluminium lighter. This alloy reduces the intru- Constellium and its partner Scomi for with a surface treatment that is sion distance by 14% and the bumper more sustainable urban transport. highly resistant to regular washing mass by 15% compared with existing Introduced in Mumbai, India, the hybrid with high pH products; the trim stays solutions – weight savings that also offers a mass improvement of 5-10% bright for the car’s lifetime and there
lowers CO2 emissions. and reduced energy consumption. is no need for recoating.
GRIPSTER™ BPA NON-INTENT LACQUERS NEW SOLAR ABSORBER SURFACE
A new design pattern for aluminium A project to produce a metallic pack- This new solution is a new generation tread plates, GRIPSTER™ has main- aging lacquer with no intentional of surfaces for solar thermal energy ly been developed for use on com- traces of Bisphenol A (BPA) has en- collectors that make solar absorbers mercial trucks to improve safety and abled Constellium’s Neuf-Brisach more affordable and effective. With delivery effi ciency, while also reduc- plant to become one of Europe’s fi rst its unique surface treatment technol- ing noise levels. It is also signifi cant- suppliers of BPA non-intent lacquer ogy, this solution offers an effi cient ly more resistant to wear (compared for coated aluminium, used for bev- manufacturing process for solar ab- to plastic or wood), enabling truck erage can ends and food cans. sorbers and makes it possible to use manufacturers to build more durable aluminium instead of copper. vehicles.
(1) “BPA non-intent” refers to the fact that Bisphenol A (BPA) is ubiquitous in the natural environment, and very small amounts may be detected in “non-BPA” substances, as current technology measures in parts per billion. We refer to “BPA non-intent,” rather than “BPA-still free” as a more accurate term for these circumstances. Moreover, current food contact materials have been in use for over 40 years, and are considered safe by the US Food and Drug Administration (FDA) and other regulatory authorities around the world. Our industry-leading conversion to BPA non-intent can linings is strictly to remove any consumer concerns that may arise from health-related allegations about the use of BPA epoxy linings, rather than from any specifi c knowledge or concern on Constellium’s part regarding their safety.
SUSTAINABILITY PERFORMANCE 2013
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CUSTOMER SATISFACTION Working closely with our customers
Constellium believes in making its production teams aware our customers’ needs by bringing the two sides together during plant visits.
atisfying the needs of customers is fundamental for any company. At Constellium, an important Sway of delivering that satisfaction is to make our production teams fully aware of our customers’ needs, particularly in terms of quality. As a result, Constellium takes the initia- tive of visiting the facilities of major customers and inviting clients to the company’s plants. Working in part- nership with customers is one of Constellium’s basic principles: by bringing the two sets of production Constellium employees visit the Audi Neckarsulm plant in Germany. teams together, the partnership takes on a human scale. Further- more, we systematically introduce tions they apply at every stage of the been successful on both counts. our collaborators to the profi les of production process – from aluminium Herti JSC was producing aluminium our key accounts in order to raise coil to fi nished assembly. For its part, closures as a small family-run busi- their awareness of their needs. Constellium’s Decin plant was visited ness in Bulgaria when Constellium by a team from major automotive cus- made its fi rst delivery of a dozen kilos PRESTIGIOUS VISITORS tomer Bosch, while the Ravenswood of metal some 20 years ago. Today, facility hosted Lockheed Martin’s F-35 thousands of tons later, Herti has sub- The value of this approach was Lightning II fl ight simulator as part of sidiaries across Europe and exports to highlighted in numerous exchanges a site visit by the US defense company. 35 countries. Constellium also helps throughout 2013. The process team of customers by supporting their cam- Neuf-Brisach’s Automotive Production LASTING PARTNERSHIPS paigns. For example, the company has Unit visited the Audi plant at Neckar- joined the “Turn 360°” campaign by sulm, Germany, where the automak- Constellium aims to build long-term manufacturers of aluminium wine er’s technical experts explained the relationships with its customers and closures to promote their product’s surface quality checks and expecta- to support their development. It has benefi ts compared with cork or plastic.
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WHERE SKILLS AND SAFETY MEET
SUSTAINABILITY PERFORMANCE 2013
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SAFETY Facing up to the safety challenge
By its own admission, Constellium’s safety record in 2013 was unacceptable. Two fatal accidents tragically underlined the need for constant vigilance at the company’s plants, even though many safety measures are in place.
he safety of employees, subcontractors and visitors is of paramount importance to Constellium and a concerted Environ- ment, Health and Safety (EHS) program T– EHS FIRST – has helped the company to signifi - cantly improve its safety record in recent years. However, this only serves to highlight the contrast between recent progress and an unacceptable record in 2013 of two fatalities – at the company’s Levice and Ravenswood plants respectively – and a further fi ve accidents involving serious injury. The Recordable Case Rate, which had been declining year on year since 2004, remained largely un- changed in 2013. underline the need for our safety rules to be strictly Constellium has stepped up its safety improvement applied, coaching is being provided at sites to make program at the company’s plants over the course of the recently- introduced Compliance To Rules Tours 2013. A self-assessment process devoted to serious fully effective. Furthermore, EHS FIRST leadership injury risks has been carried out at each site, leading training is being provided to new plant managers and to action plans, implementation and subsequent existing line management, and communication tools auditing by Environment, Health and Safety teams. including safety videos are being produced with in- Five key areas were covered by the self-assessment: creased frequency. Finally, to further improve safety cranes and lifting devices, mobile equipment- when dealing with hazardous chemicals, a specifi c pedestrian safety, stacking, working at height and audit program is focusing on the risks associated with man-machine interface. In addition, each individual the transport and use of hydrofl uoric acid. Autonomous Production Unit at every plant uses a LEAN manufacturing tool known as 8D1 to determine and address the root causes of a minimum of one (1) 8D is a team-based, structured, step-by-step problem-solving potential hazard or near miss every quarter. Dedicat- methodology used to analyse the root causes of a safety or environmental ed auditors are assessing the quality of 8Ds carried incident, based on an eight-step roadmap. The EHS 8D is designed to avoid recurrence of the incident as well as similar incidents caused by the same out at plants on a quarterly basis. In addition, to root causes elsewhere in the plant.
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MONITORING PROGRESS
These measures, all of which are monitored at regular intervals throughout the year, are part of a drive towards zero accidents – a target that is already being achieved at various company sites. At the end of 2013, Constellium’s plant at Decin, Czech Republic, had not had a recordable accident since April 2010 – representing more than 4.5 million working hours. Decin was one of nine SUBCONTRACTORS: A WIDER SAFETY NET Constellium plants not to experience a single recordable accident over the course of last year Safety at Constellium plants is not just – with fi ve of those plants operating accident-free a matter for the company’s employees. for more than 1 million working hours. It also needs to be a priority for the many Progress in improving safety risk awareness was subcontractors who work at its facilities also tracked during 2013 with the reporting of and who are included in the safety process. high-potential first aid cases, near misses and At Issoire, for example, several hundred hazards. Constellium has strongly encouraged audits are carried out a year on some 150 employees to flag-up all such situations – as a subcontractors – who are responsible for means of preventing serious injuries – and 72 were more than 10% of the total hours worked at reported in 2013, up from 18 in 2011. An 8D exercise the plant. Issoire subcontractors also have to determine the root causes and remedial actions their own EHS awards competition, with is carried out in every case. separate categories for best results, best progress and best achievement. An annual forum is held with Issoire’s subcontractors, providing an opportunity to underline safety 0 regulations and requirements, and also SERIOUS INJURIES to assess the past year’s performance and IN 2015 areas for improvement.
SUSTAINABILITY PERFORMANCE 2013
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RECORDABLE CASE RATE Recordable case rate is the number of recordable cases per 1,000,000 working hours.
60% 15 IMPROVEMENT
IN RECORDABLE CASES 12 BY 2014 9
6
3
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 SHARING BEST PRACTICES
Recognition for the EHS efforts being made by teams and individuals at site level is clearly im- NUMBER OF SERIOUS INJURIES (SI) portant. That recognition is provided in a number INCLUDING FATALITIES of ways, notably in the “EHS FIRST and Sustain- Project contractors and visitors have been ability” category of the company’s annual Thank systematically included in these statistics since 2008. Before that, only “extended” contractors, You Awards for its employees. In 2013, the Gold such as canteen and security staff, were included. Award was presented by Constellium CEO Pierre
Vareille to a team from Issoire for their work on the 8 identifi cation and storage of casting tools, there- 7 by reducing molten metal risk. The Silver Award 6 went to employees from Neuf-Brisach for a project 5 that avoids the need for casting operators to assist in the drop start-up of the casting system. 4 A fall- arrest system introduced at Landau for truck 3 loading took the Bronze Award. 2 Similar recognition is given in Shared Practice 1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Competitions organized during EHS Network Meet- ings held at plants during the year. Teams from several plants are brought together to learn from each other and to vote for the best new safety meas ures to have been introduced. HEALTH AND SAFETY INDUSTRY RECOGNITION Constellium supports a variety of projects A “Safety solutions competition” held during the to promote employee safety and wellbeing. European Aluminium Association (EAA) Safety Singen made 2013 the “Year of the Healthy Workshop in June saw Constellium take the top Back,” providing presentations and shop-fl oor three places out of 39 entrants, selected by some training on ergonomics in the workplace, 50 participants from EAA member companies at the along with back-related gymnastics exercises. session. Winning entries have included new low- At Voreppe, a working group was set up energy LED lighting at the casthouse in Singen and to fi nd ways of measuring and dealing with a fall-arrest system introduced at the Landau plant stress. One of the actions implemented was for the repair of skylights on roofs. These two to have every employee attend a training measures, along with the casting tool identifi cation session devoted to raising awareness of initiative at Issoire, helped Constellium to earn ex- psychosocial risks in the workplace. ternal recognition for its work to improve site safety.
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SKILL DEVELOPMENT Where training and apprenticeships count
To develop the skills it needs, Constellium has turned to a combination of apprentice programs and management training.
n a rapidly changing environment, Constellium’s Apprenticeships not only provide specific skills future depends on having the right people that are not taught at school or college, they also with the rights skills – whatever their role in the provide a talent pool for the wider range of com- company. Over the past year, Constellium has petences needed in Constellium’s activities. Since Ifocused on two areas for its development and recruitment is localized, they are also a way of transformation as a company: apprenticeships and bringing the company closer to the communities training for front line managers. where its facilities are based, providing employ- ment and training. Following successful programs at Constellium plants in Germany and Switzerland, a group of 15 young men and women were hired at the Neuf-Brisach plant in France last September for a two-year apprenticeship to become produc- tion line operators. The plant plans to repeat the exercise in 2014.
MORE TRAINING
Across the company, training for front line managers is a key driver of the transformation program underway at the company and signifi cant resources were invested over the course of 2013. More than 50 trainers achieved certifi cation in 4 leadership modules, and went on to deliver more than 6,300 hours of courses – training more than 300 front line managers.
SUSTAINABILITY PERFORMANCE 2013
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MOTIVATION AND ENGAGEMENT Listening to our people
Constellium carried out an extensive employee survey in 2012, which led to a number of improvement programs. A new survey in 2014 will assess their effectiveness.
ob satisfaction is clearly important to all Along with these measures, Constellium also employees. The survey carried out in 2012 invested in a fi nancial recognition of its employees’ indicated a number of areas where contribution and commitment in 2013. The compa- employee satisfaction could be improved. ny offered each employee 25 shares (worth $370 JAmong the needs expressed were better commun- or €285 each at the time) at no cost, subject to ication about the company’s strategy and results, certain conditions. a greater sense of belonging within the organization and more visibility for the challenges and results at plant level.
CONCRETE ACTIONS
A series of action plans have been carried out based on the expressed needs. Constellium’s plant in 50% Montreuil-Juigné has revived and updated its IMPROVEMENT IN EMPLOYEE quarterly employee/management meetings along CONTRIBUTIONS LEAN principles to inform people about plant and BY 2014 company strategy, and to provide a Q&A session. Such initiatives are similar in scope to those for making employees more aware of customer needs through plant visits (see p. 17). A weekly plant news- 6 POINT paper that focuses on success stories in production IMPROVEMENT improvement is now published at Issoire, while IN THE EMPLOYEE Neuf-Brisach has introduced screens in production SATISFACTION RATE IN 2014 areas showing company and customer videos. At Singen, management addressed the question of a sense of belonging by organizing a workshop on Constellium’s vision and values. The event, which brought together 80 people from all areas of the 75% PARTICIPATION plant, saw employees work together to describe RATE IN THE their mission at Singen. Their text has since become EMPLOYEE a brochure for managers to use with their teams. SURVEY IN 2014
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ETHICAL BEHAVIOR Ensuring an effective code of conduct
Constellium has set out in writing what it expects from its employees in terms of ethical behavior. The Constellium Code of Conduct set rules such as – among others – the fight against corruption and respect of human rights, in consonance with the principles of the United Nations Global Compact (UNGC).
n many ways, people’s conscious awareness of a code of conduct is as important as the THE IMPORTANCE OF ETHICS policies themselves. Constellium has therefore developed an e-learning tool to make its Constellium’s policy on ethical behavior and Iemployees aware of the company’s rules on ethical its stand on anti-corruption are an integral behavior. The interactive program creates a series part of the way it conducts business. of practical scenarios involving ethical dilemmas To remove any doubt and to promote best which the respondent then has to resolve, if practices for people at all levels of the necessary with the help of summaries of the code. organization, the Code of Conduct sets out All new managers are expected to complete a the company’s expectations of its employees. training session on the Constellium Code of Available in six languages on the company Conduct using this tool, while existing management intranet and website* so as to be accessible is expected to undergo a refresher course every to all employees, it covers areas such as year. In 2013, more than 95% managers completed respect for human rights and equality in the these training sessions. The objective is to reach workplace, and conforming to EHS policies 100% in 2014. and practices. The ethical conduct expected in business dealings – including policies on gifts and entertainment, integrity and competition issues – is also explained. The Code of Conduct is an essential tool in the fi ght against corruption and to make sure that human rights are respected within the company. Both are key principles of the UNGC. * http://www.constellium.com/media/literature
SUSTAINABILITY PERFORMANCE 2013
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COMMUNITY ENGAGEMENT Being part of the community
Constellium plants have a role to play in their local communities that goes beyond economics and employment.
onstellium is a willing participant in community engagement, either direct- ly or through the voluntary Cefforts of its employees. Typically, these involve supporting a local char- ity event or opening the doors of our plants to employees’ families and friends for a special occasion. For example, nearly 50 Constellium Singen employees and family mem- bers took part in the 2013 edition of a sponsored walk, jog and wheelchair event. Together they covered more than 800 kilometers, earning a €2,500 check from Constellium for BeTreff, a social institution for people with mental disabilities, partly funded by charitable donations.
The Singen team at the BeTreff event. FAMILY ACTIVITIES
Plant management at Ravenswood arranged a series of events for the ties, with dinner provided and prizes guests get to visit the plant and listen benefi t of staff and their families over for the youngsters. In December 2013, to presentations about EHS and the the course of 2013. More than 800 em- more than 600 employees and their company, while operators show people ployees and family members came families enjoyed a “Breakfast with how their particular machines work. together to watch an evening base- Santa.” Similarly, Constellium’s joint Along with raising the company’s pro- ball game in nearby Charleston, West venture plant in Changchun, China, fi le locally, a key aim is to make people Virginia, with the sporting entertain- organizes an annual “Show Me Your aware of the importance of workplace ment accompanied by a picnic dinner. Company Day” for the families and health and safety and protecting the Ravenswood also organized pool par- friends of its employees. For half a day, environment.
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OPE IMPROVING RESOURCES RAEFFICIENCY TIONS
SUSTAINABILITY PERFORMANCE 2013
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ENERGY The drive for effi ciency
Energy is required for transforming aluminium into products that subsequently save CO2 emissions in planes, cars and other weight-saving applications. Through investment, Constellium is consistently improving its energy efficiency.
nergy, and its efficient use, is a daily it is consumed. A series of projects at Constellium priority for Constellium’s plants. Turning plants in 2013 supported further progress in the ingots, billets or scrap into plates, sheets company’s energy effi ciency index. The index, which and extrusions requires energy and has is calculated on the basis of energy consumption per Elong been a focus of efficiency improvements. processed metric ton – corrected from the effect of Though energy consumption and greenhouse gas product mix change – consistently improved in 2013, emissions contribute to global warming at the start for the third year in a row. Constellium is still on track of the product cycle, fossil fuel consumption and for its 2015 objective of 10% improvement of the
CO2 emissions are then reduced throughout the ratio compared with the 2010 baseline. Further life of the end product, notably by lightweighting investment in more energy-effi cient production tools (see Products, p. 9). In addition, recycling aluminium is expected to help reaching this target. allows for the substitution of primary aluminium production at a dramatically reduced energy cost (see Recycling, pp. 10-13). AIMING FOR THE ISO 50001 STANDARD GROWING DEMAND Introduced by the International Organization In 2013, Constellium’s product mix for the aero- for Standardization in 2011, ISO 50001 is a space and automotive sectors switched to new standard for implementing and maintaining alloys that offer better environmental performance an energy management system. Constellium’s over the life of the end product. However, the new plants in Germany have all been ISO 50001 alloys required more energy to produce, leading certifi ed 2012. Issoire is the most advanced to an increase in consumption in 2013. Other con- elsewhere, having completed the fi rst tributions to the increase of energy consumption evaluation stage in September 2013, while come from increase of recycling activity in Neuf-Brisach, Valais and Decin are at an Neuf-Brisach, or the ramp-up phase of Decin’s new earlier stage of the process. All the major recycling oven (see Recycling, pp. 10-13). Refl ecting European plants – accounting for two thirds the increase in energy, greenhouse gas emissions of Constellium’s total energy consumption – (GHG) also rose in 2013. However, a key aspect are due to be certifi ed by the end of 2015. of the energy question is the effi ciency with which
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ISO 50001 MAJOR EUROPEAN SITES REACHING CERTIFICATION BY 2015 ENERGY EFFICIENCY VS. ENERGY CONSUMPTION INDICATORS
The energy-saving projects cover a wide range of Increasing the share of high performance activities. Some involve improvements in process products that enable energy savings during their recovery, such as the reduction of the scrap ratio in use more than compensates for the extra energy Levice, Slovakia, for instance. Others take the op- spent during production. Similarly, increasing portunity of tools revamping or investment in new recycling activity at Constellium sites enables tools to bring better energy effi ciency due to state- to recycle more aluminium scrap, on the sites of-the-art equipment. This was in particular the case where they are going to be transformed into for the new furnace in Burg, Germany, or the new new products and substituted for primary metal. electric oven in Ravenswood, West Virginia, US. Last Yet in both cases this leads to an increase of but not least, some projects aimed at reducing en- Constellium’s energy consumption (as well as ergy consumption bring other benefi ts at the same direct and indirect GHG emissions), as the time, like investment in LED lighting at Issoire and resulting environmental benefi ts occur outside Singen (see below). Technology and EHS networks Constellium. Consequently, Constellium did not also play a role to accelerate the diffusion of best set absolute targets for energy consumption or practices within Constellium regarding energy reduction of GHG emissions but instead decided consumption reduction. to use an energy-effi ciency performance indicator. The basis of this indicator is the SINGEN’S EXAMPLE amount of energy per metric ton needed to manufacture products. It is corrected from the As part of the energy-saving initiatives carried out effect of product mix changes to refl ect inherent in 2013 for ISO 50001 certifi cation, the Singen plant production process performance. has begun replacing its high-pressure mercury-
SUSTAINABILITY PERFORMANCE 2013
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REVISED FIGURES
In 2013, two French plants in Ham and Saint-Florentin were divested. As their environmental impacts (emissions and consumption of resources) occurred while part of Constellium until their divestment, their contribution has been included in the 2013 fi gures. However, since these plants are no longer under Constellium control, their contribution has been excluded from the company’s environmental performance indicators that are based on relative data (energy effi ciency and the target of reducing landfi ll waste by 75%). Moreover, from this year onward, the waste production indicators also exclude recycled aluminium scrap that had previously been accounted for as recycled waste by a number of plants. While this negatively contributes to the share of recycled waste, it is more accurate from a methodological point of view as aluminium scrap should not be considered as waste.
vapor (HQL) lamps with low-energy LED lighting. the only benefi ts of the new equipment. With the The new lamps are three times brighter than HQLs service life of an LED lamp being in excess of – thereby providing a better, safer workplace – 50,000 hours – around six years – there is also a while electricity savings of around 70-80% mean clear benefi t for the plant’s maintenance depart- that the installation costs of the new equipment ment, especially as the bulbs in the casthouse are should be recovered in less than 2.5 years. The fi rst suspended at heights of 12 to 15 meters. phase of the project saw a third of all the casthouse lamps replaced. The brighter environment has been particularly appreciated by night-shift workers and also makes it easier to identify potential product quality issues 10% DECREASE in the sharper, higher-contrast light. Shop fl oor IN ENERGY employees are also able to contribute to further CONSUMPTION energy savings by switching to power-save mode PER PROCESSED where appropriate. However, improved cost UNIT BY 2015 competitiveness, sustainability and safety are not
ENERGY CONSUMPTION
2010 2011 2012 2013
Total energy consumption (TJ) 10,890 10,810 10,936 11,677
Energy effi ciency index 1,000 0,957 0,934 0,926 Greenhouse gas (GHG) 694 686 701 743 emissions (kt CO2 eq.)
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WASTE Action plans to reduce waste
Constellium is working to reduce the amount of waste created during production, setting ambitious goals for the years ahead.
hough waste is an inevitable its landfi ll waste in weight terms by by-product of the manufac- around 8,000 metric tons a year. 75% turing process, Constellium With just three plants – Neuf-Brisach, TOTAL has long used recycling Issoire and Ravenswood – accounting LANDFILL REDUCTION Tas a way of reducing the amount for 95% of this waste, the company’s BY 2020 of production waste it sends to initial focus for improvement has landfi ll. In 2013, a total of 83.6% of been on the two plants in France. Constellium’s waste was recycled, Testing is underway at Neuf-Brisach with only 11.4% going to landfill on process to recycle flue gas facilities. However, production waste filtration dust. At Issoire, trials are tends to increase with aluminium being carried out to improve the sort- the 2020 target and are expected to casting and recycling activities – as ing of bricks and concrete to allow start delivering their fi rst results in indicated in the company’s 2013 for their recycling, while permission 2014. Althought these will be signif- results compared to 2012 – and it has has been obtained to incinerate the icant milestones, further action will not yet been possible to improve the “mixed municipal waste” produced. obviously be needed in the future to situation regarding landfill waste. These actions cover around 50% of meet the 2020 target. We acknowledge the challenge ahead and have for this reason set an ambitious target of reducing landfi ll waste by 75% by 2020. PRODUCTION WASTE (IN METRIC TONS)
NEW TARGET 100,000
80,000 Constellium is committed to ad- dressing the upward trend in waste 60,000 volumes, not only to further improve 40,000 its sustainability but also to refl ect its view that landfi ll availability will 20,000 10 , 858 9 , 683 8 , 840 become increasingly restricted in the 8 , 224 0 years ahead. As a result, Constellium 2010 2011 2012 2013
is taking a proactive approach by TOTAL INCINERATION setting a target that would reduce RECYCLING LANDFILL
SUSTAINABILITY PERFORMANCE 2013
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WATER AND EMISSIONS TO AIR Working towards higher standards
A major project carried out in 2013 has led to a marked improvement in water treatment, while emissions to air showed no significant trend.
A NEW PROCESS AT NEUF-BRISACH onstellium’s water policy is guided by the results of a consumption assessment 70% of Constellium’s water is consumed at its Neuf- carried out at its major sites using the Brisach plant, which draws on local groundwater, Global Water Tool. Since the results primarily for cooling in the casting shop and rolling mill. Cshowed there to be no significant risk of water To meet new regulations as part of its operating license scarcity in the decades ahead, the company’s renewal by the local authorities, Neuf-Brisach has main focus has been on improving the quality delivered a remarkable improvement in water discharges of its water discharges – particularly in the light from rolling mill – reducing the chemical oxygen of increasing regulation. demand (COD)1 from 2,000 mg/l to 300 mg/l. The plant invested in a new process for treating rolling STABLE EMISSIONS emulsions, involving cross fi ltration and reverse osmosis. The process was the result of a two-year project Constellium’s emissions to air are both stable and that brought together production, environmental on a limited scale. Because of this limited impact, management and research and development teams. which is mainly linked to Constellium’s energy mix, (1) COD is used to measure the amount of organic components the company does not currently consider this (pollutants) in water. subject to be a high priority – beyond the respect of current and anticipated future legislation.
WATER CONSUMPTION (IN 106 m3) EMISSIONS (IN METRIC TONS)
30 500
25 400
20 300 15 200 10
100 5
0 0 2010 2011 2012 2013 2010 2011 2012 2013
TOTAL WATER WATER FROM PUBLIC NET NOx SO2 GROUND WATER SURFACE WATER PARTICULATE MATERIALS VOC
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GOV SETTING INDUSTRY ERSTANDARDS NANCE
SUSTAINABILITY PERFORMANCE 2013
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GOVERNANCE A culture of transparency
Constellium is committed to effective governance, transparency in its activities and improving the sustainability performance of the sector with industry associations.
GOVERNANCE AT INDUSTRY LEVEL
Traceability is also important, as it will figure in the industry standard being developed by the Aluminium Stewardship Initiative (ASI), of which Constellium is a co-founder. An early draft of the ASI standard – which will define principles and performance criteria in the areas of governance, the environment and social practice – was drawn up in 2013. The fi rst full version is due to be published in November 2014, following two separate public consul- tations and three review meetings ransparency is the key to An important goal is for as many by the standard-setting group over effective governance. In of its key suppliers as possible to the course of this year. Constellium’s 2013, Constellium continued become fellow signatories of the involvement in industry-wide gover- a policy of improving trans- UN Global Compact – a plan still in nance is not limited to the work of the Tparency by providing the highest its early stages. The company is cur- ASI, however. level of disclosure to the Global rently working on the methodology Through its membership of the Euro- Reporting Initiative (GRI) and the Car- for embedding sustainability into its pean Aluminium Association (EAA), bon Disclosure Project. The aim is a purchasing policy, while also develop- the company favors the dialog with simple one : to provide data that will ing the future process for auditing the governments and supranational enable people to draw their own con- supply chain. The need to comply authorities, such as European com- clusions about Constellium’s environ- with Dodd-Frank Act regarding the mission. One key topic of this dialog mental performance. Constellium Confl ict Minerals1 reporting require- also has similar ambitions for its ment was a good opportunity to (1) Conflict minerals involve ores mined in the supply chain. check the traceability of our raw Democratic Republic of Congo and neighboring countries that are used to produce tin, tantalum, materials, all along the supply chain. tungsten and gold.
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is the impact of EU regulations on the back, recycling or fi nal disposal. The and Automotive Rolled Products competitiveness of the European EAA has been discussing the guide- (see interview, pp. 4-7), underlined aluminium industry. lines for these initiatives with the EU, the challenge facing the industry in Another area of growing discussion notably with a view to making them September 2013. “Effi cient collection is Extended Producer Responsibility more effective across Europe. Cur- and sorting systems are essential (EPR), a concept that developed in rent schemes have revealed a lack of steps in the fi ght for higher recycling the 1990s in Europe and makes consistency at national level in recov- ambitions,” he told a seminar in Berlin. manufacturers responsible for the ering packaging from both households “The aluminium industry encourages entire life-cycle of their products – and public areas. Laurent Musy, Chair- policymakers and all stakeholders to and specifically the end-of-life, man of the EAA Packaging Board and implement best practices and consis- either through schemes for take- President of Constellium’s Packaging tent approaches throughout Europe.”
WORKING CLOSELY WITH OUR SUPPLIERS EPR is a concept that makes For a global organization such as manufacturers responsible Constellium, the ability to draw on an for the entire life-cycle of their experienced and reliable supply chain is a major business asset. Building products, and specifi cally long-term relationships and working at the end-of-life. with our suppliers to improve perfor- mance on both sides have long been
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guiding principles of the company. An improvement program involving aluminium slab supplier Rio Tinto ASI: the view Alcan (RTA) in 2013 illustrates how the theory translates into practice. from BMW Group RTA’s Dunkerque plant is the largest The Aluminium Stewardship Initiative (ASI) is supported external supplier of rolling slab to our by several of the world’s leading automotive brands. site in Neuf-Brisach. As part of the Dr. Alexander Nick, a Team Lead in the Sustainability improvement, RTA invested in the and Environmental Protection Department at BMW plant and worked with Constellium Group, explains his company’s involvement with to optimize our stock of slab and the the initiative. associated inventory costs. A proto- type pull-flow process that linked production to fi rm customer orders was introduced so as to minimize overproduction. More effective com- munication between Constellium and RTA was also built into the program.
POSITIVE RESULTS
The results proved to be highly satis- factory. The achievements were also recognized by Constellium’s senior management during a visit to the Why has BMW Group chain from extraction to fi ni shed Dunkerque plant after it succeeded joined the ASI? product; what’s vital is that it in delivering 100% of the company’s Our objective is to be the most doesn’t become merely a niche orders on time and in full for 30 con- sustainable automotive comp- standard – for which companies secutive weeks. The RTA Dunkerque any and we have a comprehen- have to pay a premium. We want team also provided a step change in sive set of measures – both the bar to be raised for the whole product quality. Building on the internally and for our suppliers. industry, providing a more trans- program, a pull-fl ow process is now We work with our suppliers parent chain of custody with being implemented at Neuf-Brisach to fi rmly establish sustaina- more traceability of the materi- for its highest-volume products. bility throughout our supplier al we buy. RTA will be responsible for the supply network. Therefore, we defi ned chain and inventory up to the Neuf- a risk management process How do you see Brisach scalping machine in exchange including a risk filter, self-as- Constellium’s role? for a rationalization of the ordered sessment questionnaires and I’m very happy that Constellium references, which will result in in- audits. Beyond the boundaries is an active participant and is creased capacity for Dunkerque. of our company, we are involved moving the ASI through the For all of these projects, the key to in various industry and cross- business, positioning it within success has been a shared commit- industry initiatives such as the Constellium as an initiative that ment to transparency and recognition ASI to further establish environ- will defi ne the future of alumin- of the need to create value for both mental and social standards in ium. The world is changing, and sides. supply chains. externalities need to be taken into account. If we are success- What are your expectations ful, I think this can really be 100% of the ASI? groundbreaking in the way that OF KEY SUPPLIERS We want to help create a global aluminium is produced and JOINING THE UNGC standard that covers the supply perceived. BY 2015
CONSTELLIUM
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GRI INDEX Global Reporting Initiative Disclosure Index
Constellium reporting was checked by GRI Report Services, which concluded that the report fulfilled the requirements of Application Level A. Key for GRI 3.1 disclosure levels: Fully disclosed not disclosed partially disclosed For the full report, our GRI Appendix is available on our website: www.constellium.com
Location and status of disclosures: R-Report and A-Appendix Location Location Indicator Status Page Indicator Status Page R/A R/A STRATEGY AND ANALYSIS GOVERNANCE, COMMITMENTS AND ENGAGEMENTS 1.1 R4-7 4.1 A 1.2 R & A 2-3 4.2 A ORGANIZATIONAL PROFILE 4.3 A 2.1 RCover 4.4 A 2.2 A 4.5 A 2.3 A 4.6 A 2.4 R & A 4.7 A 2.5 A 4.8 R & A 1, 19-21, 24 2.6 A 4.9 A 2.7 A 4.10 A 2.8 A 4.11 A 2.9 A 4.12 R & A 2-3 2.10 A 4.13 A REPORT PARAMETERS 4.14 A 3.1 A 4.15 A 3.2 A 4.16 A 3.3 A 4.17 A 3.4 A DISCLOSURE ON MANAGEMENT APPROACH (DMA) 3.5 R & A 2-3 DMA EC A 3.6 R & A 11, 21, 34-35 DMA EN R & A 2,5-8, 9-16, 27-31 3.7 A DMA LA R & A 19-22 3.8 R & A 29 DMA HR R & A 17, 24, 33-35 3.9 A DMA SO R & A 2, 24, 25, 33-35 3.10 A DMA PR A 3.11 A 3.12 R36-37 3.13 A
SUSTAINABILITY PERFORMANCE 2013
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Location Location Indicator Status Page Indicator Status Page R/A R/A ECONOMIC LA4 A EC1 A LA5 A EC2 A LA6 A EC3 A LA7 R & A 19-22 EC4 A LA8 A EC5 A LA9 A EC6 A LA10 A EC7 A LA11 A EC8 A LA12 A EC9 A LA13 A ENVIRONMENTAL LA14 A EN1 A LA15 A EN2 A HUMAN RIGHTS EN3 A HR1 A EN4 A HR2 A EN5 R & A 27-29 HR3 A EN6 R & A 9-16 HR4 A EN7 A HR5 A EN8 A HR6 A EN9 R & A 31 HR7 A EN10 A HR8 R & A 24 EN11 A HR9 not material A EN12 A HR10 A EN13 A HR11 A EN14 A SOCIETY EN15 A SO1 R25 EN16 A SO2 A EN17 A SO3 R & A 24 EN18 R27-29 S04 A EN19 A SO5 A EN20 A SO6 A EN21 A SO7 A EN22 R & A 29, 30 SO8 A EN23 A SO9 A EN24 A SO10 A EN25 A PRODUCT RESPONSIBILITY EN26 R & A 9-13, 26-31 PR1 R14-15 EN27 R & A 9-13, 30 PR2 A EN28 A PR3 A EN29 A PR4 A EN30 A PR5 A LABOR PRACTICES PR6 R & A 26 LA1 A PR7 A LA2 A PR8 A LA3 A PR9 A
CONSTELLIUM
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Forward-looking statements
This report contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those statements containing such words as “expects,” “intends,” “plans,” “scheduled,” “should,” “could,” “will,” or other words of similar meaning. All statements that refl ect Constellium’s expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. The forward-looking statements contained in this report are subject to a number of known and unknown risks, uncertainties, and other factors and are not guarantees of future performance. These risks and uncertainties include, but are not limited to, those set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and described from time to time in subsequent reports, fi led with the US Securities and Exchange Commission. Constellium disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.
Head Offi ce Operational Headquarters
Tupolevlaan 41-61 830 Third Avenue, Washington Plaza Max Hoegger-Strasse 6 1119 NW, Schiphol-Rijk 9th fl oor 40-44, rue Washington 8048 Zurich The Netherlands New York, NY 10022 75008 Paris Switzerland United States France Phone: +31 20 654 9780 Phone: +41 44 438 66 00 Phone: +1 212 675 5026 Phone: +33 1 73 01 46 00
www.constellium.com
SUSTAINABILITY PERFORMANCE 2013
D14051-Rapport_Annuel_2013-Sustainability-FLIP.indd 38 09/06/2014 14:58 This report was released in May 2014. Coordination: Corporate Communications Department and Sustainability Council. Concept: All Contents — Design and production: All Contents Editorial: Trevor Huggins (English Service) and Sam Davies Printing: PDI — This document was printed with plant-based inks, on paper produced from trees grown in sustainably-managed forests. Photo credits: A. Doyen, G. Uféras, P. Verzone / Vu, iStock, Every Can Counts.
D14051-Rapport_Annuel_2013-Sustainability-FLIP.indd 39 09/06/2014 14:58 DRIVING THE SUSTAINABILITY AGENDA
Sustainability at Constellium is based on clear commitments in four key areas – products, people, operations and governance – each of them backed by 12 concrete targets and associated metrics for monitoring performance. These commitments are set out in the company’s Sustainability Charter, which builds on the continuity of Constellium’s sustainability efforts over many years.
Recycling and innovation are the hallmarks of Constellium’s strategy for products, while safety performance is clearly the overriding concern for our people. Energy efficiency based on recognized management systems, along with significant improvement plans for waste are the main priorities for operations. Our action on governance involves partnerships with suppliers, customers, industry associations and multi-stakeholder initiatives – the company is clear about the need for transparency over the impact of its activities.
Given its importance for every company, delivering customer satisfaction is woven into our actions in all four of these areas.
Constellium’s ambition is to develop its sustainability agenda through teamwork, both internally and with its external partners. With this collective effort, we can achieve our goal of being “Altogether more sustainable”.
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